Scaling Up With Intention With Joy Lutz

In today's episode of The Gateway Connection Podcast, Joey O'Hern is joined by Joy Lutz, CPA, CTP, Owner and Founder of Aligned CPA. Listen in as they discuss the truth of what it requires to create a scalable business.

Thank you for listening today, and thank you to Security Safe for their support of the Gateway Connection Podcast! For more ways to connect with us, visit lnk.bio/gatewaychamber.

Transcript

SPEAKER_02 0:00

The beauty of being a business owner is you get to choose. Like you don't have to look like every other business, you know. And so just choose the path that you want. There's a lot of positives in staying small. Scaling and growing a business is not for everyone. Like it is really hard. There are so many hard things that people don't talk about. It just means get clear on what you want your life to look like.

SPEAKER_00 0:22

Welcome to the Gateway Connection Podcast, where we connect you with the movers, shakers, and leaders shaping our region. I'm Joey O'Hearn, Executive Director of the Chamber, and your host. Let's get started. Since launching her firm in 2012, Joy Lutz, CPA, has been on a mission to help entrepreneurs build strong businesses through better leadership, smarter systems, and strategic financial planning. As a certified tax planner, she combines deep financial expertise with practical real-world experience as a business owner herself. Her work has earned numerous honors, including being named 40 under 40 CPA, the Lake City Columbia County Chamber of Commerce Small Business of the Year, and PASBA's National Small Accounting Firm of the Year in 2025. But among her most meaningful recognitions, again, is being the Chamber's Employer of the Year in 2023, reflecting her commitment to building a strong team and workplace culture. Beyond her business, Joy is an active community leader, having served in leadership roles with organizations including the Chamber, Ronald McDonald House, and Altrusa International. She currently serves on the board of directors, her professional association of small business accountants, and she helps support and strengthen accounting firms across the country. Welcome to the podcast, Joy.

SPEAKER_02 1:32

Thanks for having me.

SPEAKER_00 1:33

I'm so excited that you're here. Joy has a fantastic podcast. Joy, if you want to plug your podcast.

SPEAKER_02 1:37

Yeah, so my podcast is called Upleveling with Joy Letz, and we talk about, you know, building a business, systems, financial things that you need to be aware of or look at. And, you know, my goal there is really to help business owners become better owners and operators.

SPEAKER_00 1:53

I was gonna say, so if you think it's just like a CPA financial focus podcast, it is not. I listen to it. It's great quality content every time. So we'll go ahead and get started. Joy, you've built your CPA firm into a very successful business. What inspired you to start your own business? And did you always envision it would grow in the way that it has?

SPEAKER_02 2:10

Lots of questions there. So I knew I always wanted to own a firm. I just didn't know what that looked like. If that was like being a partner somewhere else or what. I'm very lucky to have a really good mentor where I worked for a CPA for 13 years. I would have loved to stay there, but I ended up making a decision to leave mainly because at that time technology was changing. That CPA was a little bit older and wasn't really wanting to invest in technology and see where it was going. So I knew, like, in order for me to have a long career, I had to kind of do that on my own. So that's what started that. As well as I wanted to be able to work closer with clients and not just produce tax returns.

SPEAKER_00 2:47

And what did your first hire look like once you went out on your own?

SPEAKER_02 2:50

My first hire was a part-time bookkeeper. I don't even think she like answered the phone. I think I was probably still doing that. And that was just probably within the first couple of months that I was like, okay, I'm gonna need some support here.

SPEAKER_00 3:02

For sure. And obviously, since then your team has grown.

SPEAKER_02 3:05

Yeah. Yeah, definitely. And so, like going from, and I I had part-time employees for a long time, probably the first five years, maybe. And I think there's some probably mindset issues that fueled that of thinking like, oh, I can't afford a full-time person or like I don't have the revenue to do it. I wasn't really thinking of like the impact that they could have in the firm that would free me up. I was just thinking of cash. And so for a long time, it was just part-time employees.

SPEAKER_00 3:31

How do you get to the point of like taking that leap of like, okay, now we're going to hire a full-time team member or team members?

SPEAKER_02 3:38

Well, for me, the reason I think I finally made that leap was just looking at the success I had with part-time. And it just kind of showed me like the cash will follow, like, build it and they will come. You know, we were doing a really good job. And so, and of course, with me being an accountant, I could run those numbers and say, okay, well, I've got three months of cash flow to make this work, or I have six months of cash flow to make this work. And so it was kind of a no-brainer at that point.

SPEAKER_00 4:03

For sure. Ironically, right before we were recorded this podcast, I was having a conversation about recruiting good talent and how that's becoming a challenge for people, especially here in the local market. But what's worked for you for attracting the right people?

SPEAKER_02 4:14

Trial and error. You know, sometimes you just throw things at the wall and see what sticks. For sure.

SPEAKER_00 4:19

Absolutely.

SPEAKER_02 4:19

You know, and what works this year might not have worked last year. We're really big on what we call our internal marketing. And so a lot of our social media is not necessarily aimed at getting potential clients. I mean, it's definitely there for that, but it's to show our culture and how we work and how we work together. And so that's what I try. I also try in, I call it like light recruiting on LinkedIn. So if you follow me on LinkedIn, I talk a lot about culture or team building or leadership. And a lot of that is so potential accountants can say, hey, I'd love to work there. For sure. So that's kind of one of the things that we do is is show how we're different because we really are from most CPA firms in the way we operate, in our team dynamics, and in our culture. And so I think it's my job, my number one priority to show that on social media.

SPEAKER_00 5:12

How do you balance hiring for skills versus hiring for a cultural fit?

SPEAKER_02 5:17

We actually do probably like a three interview process. And our very first interview is a cultural fit. Like you're not gonna get, I don't care if you're like the best CPA in the world. If you can't get through our cultural interview, like you're not gonna move to the second step. I've always said that I can teach you to be a good accountant, but I can't teach you to be a good person.

SPEAKER_00 5:39

Agreed.

SPEAKER_02 5:39

And so now there's definitely balance with that because I have to balance that with what technical skills do we need in the firm right now. Yeah, absolutely. You know, like I can't just take an accountant right out of college and say, okay, you're gonna now work with our high net worth clients. So I have to balance that a lot, but I have learned that if I skip steps in that cultural interview or if I don't listen to red flags, it burns me later. And so I've learned that enough times to know I better make sure they're a good fit. And so, and our cultural interview is just where we're, I know we have five core values and what those are. So I ask a lot of questions around those values. And then um, we also hire by something we call it hungry, humble, smart, which comes from Patrick Lenciane's book. And I need you to fit into those three categories to know that you're gonna fit with my team.

SPEAKER_00 6:29

And is it you doing that first round of cultural interviews?

SPEAKER_02 6:32

Yes. And we have had a couple of times where I'll have someone else do it, which is fine, as long as they know. I mean, anyone who knows me, I'm very process-driven. So we have this all documented. So I have had other people do it, but I prefer that first interview.

SPEAKER_00 6:46

And once you have great people, obviously keeping them as a whole different challenge. Yep. What are you doing internally to intentionally keep those good hires?

SPEAKER_02 6:54

Well, one of the things we do, and you know, this is very related to like CPA firms, is we operate differently in our tax season is different. You know, you may go to some firms and they're working 60, 70 hours a week during tax season. Our team works 45. And we do that because of the way I've structured the business model. And that comes down to we work with clients on a monthly basis, giving them financials, giving them tax planning. And so we're not trying to cram a ton of work and file a bunch of forms in tax season. We've already kind of done that work. I've found that accountants like that business model much better. It's a lot less stressful. You still get that work life balance, you know, if that's a thing. You still get that. So between the way that the business is set up and then bringing in the cultural aspects, the way, you know, one of the things we do is like we really believe in commitment to community. So we give back and we do quarterly volunteer activities and stuff like that. I think that people like that impact. Or at least the right people for our team likes that impact. We do a lot of fun things during tax season too. Like this year, we brought in like a masseuse, then a car detailer. And, you know, I just want the team to kind of be rewarded with smaller things.

SPEAKER_00 8:08

Well, I think it makes them feel valued.

SPEAKER_02 8:09

Yeah, it really does. Like I truly do care for our team. And so I think that that comes through. And then throughout the other year, you know, money, no, but also not everyone's motivated by money. And so, you know, time off, there's different things that I can kind of do. One of the things I've learned as I've grown a team, and I'm able to do this because we're smaller. I don't think you could do this if you had, you know, 100 employees, but I know what drives each person. And so I can customize benefits or, you know, bonuses or things like that based off what they need or what they really want.

SPEAKER_00 8:40

And how is that change growing from you and a part-time employee to now the team that you are now? Specifically, I feel like in today's culture, as we're talking about culture, the needs and the what people value as an employee have drastically shifted over the last five to 10 years.

SPEAKER_02 8:55

Yeah. Well, number one, I've got the cash to do it.

SPEAKER_00 8:58

That's always nice.

SPEAKER_02 8:59

You know, you it's real money. Actually, I had a conversation with someone yesterday. We were talking about benefits, and and when I didn't have the cash to do it, what I did is paid time off because I'm like, you know, I might not be able to give you these big bonuses or things like that, but I can give you some time off. So that's kind of how it's changed over time, is just figuring out. And that's one of the things I've learned as a leader is like everyone's different. Like we're all human, and you can't necessarily manage everyone exactly the same. So I don't know if that really answered your question, but for me, over time, it's just been realizing that.

SPEAKER_00 9:32

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SPEAKER_02 10:16

Oh man, managing people is hard. It's incredibly hard. It's hard. It's very rewarding, but I just the way I am as a leader, I take things very personal. So that can be hard as well. And so I've just learned to, I think my number one lesson is to give feedback faster and kinder. There's a book called Radical Candor that teaches this a lot. And, you know, showing people that you care, but you you're going to give hard feedback. So that's something I've had to learn to do of, you know, if I'm thinking it in my head, I need to let them know because they don't know what's going on in my head. And they don't know what's going on in my office that I need to give faster feedback.

SPEAKER_00 11:00

Absolutely. I was just listening to a podcast the other day and it was talking about the statistical research behind the longer you don't get feedback, the bigger the problem becomes, the bigger the tension grows, et cetera.

SPEAKER_02 11:10

Yeah. Absolutely. Yeah. And also like, I think this goes back to our earlier question. I think what I've found employees want also is a growth plan. They want to know like, what are my opportunities or what is my next step? And anytime I'm not sharing that, they are potentially looking for another job. For sure. You know, and so that's kind of another thing that I've I try and be very clear with when I meet with a team. We've just recently went to like a quarterly growth plan for each employee. And so I'm just showing them, like, you know, here's what you need to get to the next step. Here's what the next step looks like. Here's what it could look like in three years, because they want to see that potential for, you know, where can they land and stay in your company?

SPEAKER_00 11:53

Absolutely. You know, a lot of small business owners struggle with delegation. How do you learn to let go of control and trust others with your work? Saying that as a control freak.

SPEAKER_02 12:03

Well, I think that if you want to grow, you can't control. You can't have both.

SPEAKER_00 12:07

Write that down somebody.

SPEAKER_02 12:09

Yeah. And you have to also know your ability to bring on the right people. And those people are going to be able to take the task to the finish line.

SPEAKER_00 12:18

What's that saying? It's like higher for not what you can do, but what other people can do for you or something along those lines. Yeah.

SPEAKER_02 12:24

And, you know, so I'm also, like I mentioned before, a very processed person. So, like for me, like we have a 30-page admin manual, how to run Joy's Life is really what it is. And it's like, here's how you respond to my emails, here's how you book my travel, here's how you do X, Y, and Z. And so I have that process in place. So if I get the right people in place, they can, they can do the things that I need that I'm delegating. So I don't have to worry about it.

SPEAKER_00 12:49

It's funny you mentioned a manual. We're about to bring somebody onto the chamber team, and I'm now writing a 30-page manual. And I went back and forth with, is this controlling or is this empowering? But then I thought ultimately, if I was a new hire to say, like, here's a literal manual of how to do everything. Yeah. So you're not drinking from a fire hydrant or whatever. The saying is like you can actually start doing your job effectively from the job.

SPEAKER_02 13:10

And one of the things I always say, and I have this conversation with clients a lot, is you know, they're talking about, oh, this employee messed up or this isn't going right or this failed. And I always ask the question, is this a people problem or is this a process problem? And if you don't have a process in place, it's a process problem.

SPEAKER_00 13:26

I've heard you say that numerous times on your podcast. And ironically, it's usually if we're having something go on at the chamber, it usually turns back to me.

SPEAKER_02 13:34

Yeah. That it's a process problem. Yeah, same. I'm like, oh, I messed up. You know, when I don't follow the systems in place, that's when that's usually when I mess up.

SPEAKER_00 13:43

Absolutely. Absolutely. And the important thing of processes, they're helpful for when if somebody is not there. If somebody can pick up the process and keep going. Well, for whatever reason.

SPEAKER_02 13:52

Yeah, funny you say that because we have a new senior accountant who's been with us for a couple of weeks now. And and I told her, hey, I want you to follow this process. If any of this doesn't make sense, let me know. We and we can edit it because that's the thing with processes. They're constantly changing as they should be. But for me, anytime we hire a new person, it's a test to see like, are our processes strong? If not, let's change them.

SPEAKER_00 14:13

Oh, absolutely. When we hired somebody a couple of years ago, it was eye-opening of how many things we didn't have an answer for. If that makes sense. Why do you guys do this? And you're like, uh, we just do. Great question. Everybody's been used to it. Yeah. From your perspective with working with small businesses, what's one financial or leadership mistake you see owners making the most?

SPEAKER_02 14:32

Not being clear on what their goal is, probably. I mean, I have like 10 answers to that question, but you really can't know where you're going. You know, if you don't know where you're going, like you can't answer the problems today. Like, you know, do you want to grow? Do you want to sell? Like, what are what is that? And you have to be really clear on what that is before you tackle it.

SPEAKER_00 14:52

That actually goes into my next question. A lot of small business owners feel a pressure to grow. Do you believe every business should upscale or up level? Or is there value in intentionally staying a small business?

SPEAKER_02 15:02

Absolutely not. In the question, should they grow or scale? Because again, that just comes back to your goals and being clear on where you want to go. But the beauty of being a business owner is you get to choose. Like you don't have to look like every other business, you know. And so just choose the path that you want. There's a lot of positives in staying small, you know, and you have all of that control of where you want to take the business. You get the flexibility, you get to make all the decisions. And so scaling and growing a business is not for everyone. Like it is really hard. And there are so many hard things that people don't talk about. In fact, that's one of the reasons I started the podcast because I really wanted to talk about how hard it was. And so it's not for everybody. That doesn't mean that, you know, you're not smart or you're not talented. It just means get clear on what you want your life to look like.

SPEAKER_00 15:52

What mistakes do you see business owners making when they try to scale too quickly?

SPEAKER_02 15:56

They don't have a solid foundation. You know, and so that can come back to processes and systems, that could come back to team training. It could come back to financials. I mean, I see that a lot in businesses where there's really people who are wanting to grow, like they're really smart and their skill has taken them to a certain level, but now they're not up-leveling or looking at financial data to make better decisions. And so that's that's always a problem of, you know, hey, you might have gotten to half a million, even a million dollars without paying attention to data and financials, but it's going to be really hard to get to two or three without that.

SPEAKER_00 16:30

Absolutely. So for those business owners who maybe feel stuck, how do you help them decide whether to scale, streamline, stay where they are, et cetera?

SPEAKER_02 16:38

It comes down to like what they want their life to look like and like their personal life. Like I think you have to start there before you dig into business. You know, do you do you want to be off at four o'clock every day? Do you want to get phone calls on the weekend? You know, thinking, you know, what that looks like.

SPEAKER_00 16:54

I was gonna say, I know a local small business that is thriving and there's been a lot of pressure for them to grow and expand. And their mindset is like, we're okay.

SPEAKER_02 17:01

We feel like where we're at and we're okay with it. And I think a really important part of growth is pruning. And we do that every year, where it's, you know, we're looking at our client list and saying, like, who's not a good fit anymore? Who are we really not serving well? And maybe it's time to let those clients go. So either I can improve the business or I can make room for new growth. And so that's a great point. I think even if you're not wanting to grow top line revenue or employee size, you can still grow the quality of the business by things.

SPEAKER_00 17:33

That's a fantastic point. What motivates you on the hard days of running and growing a business?

SPEAKER_02 17:38

Well, I'm not a quitter. So, you know, that's really hard of, you know, like there's days where I'm like, I'm done with this. And I'm like, well, nope, you're not a quitter, so you better go back to work. You know, what motivates me? I it comes down to the clients and the impact that we make. I think we do a really good job at the service we provide, and we give a lot of value to clients. And I want to be able to impact them and help them in their business journey. So it just kind of that keeps me going.

SPEAKER_00 18:07

What advice would you give to someone who is thinking about starting a business but hasn't taken the leap yet?

SPEAKER_02 18:12

I think asking the questions of why do you want to start a business? What's your purpose?

SPEAKER_00 18:17

A million percent.

SPEAKER_02 18:18

Yeah, what's the impact you want to make? You know, because honestly, like running a business is really hard. You may be able to make a bigger impact working in someone else's business. And so figuring out like why, you know, are you wanting to build something to grow and sell? Are you just wanting a really good job where you can make impact? Then that might be on someone else's business.

SPEAKER_00 18:38

That's a fantastic point.

SPEAKER_02 18:39

And it's looking at the market too, of like, is this needed? Will you actually be able to make money? Like, I think it's really important to test the market. You know, if you have an idea of, you know, see if it's gonna start it on the side, like a side hustle. Absolutely. And see, like, is it even needed?

SPEAKER_00 18:55

So, last question, and we ask all of our guests this as we wrap up every episode. What is one business or leadership tip you live by or had to learn the hard way?

SPEAKER_02 19:05

I guess I'll go back to kind of what we talked about before. And I would say clarity. I think clarity is momentum, like just being very clear on where do you want to be in 10 years? What do you want the business to look like? What do you want the team to look like? And bringing that back to, you know, okay, well, where do we want to be in three years? Where do we want to be in one year? And clarity on your role. Like, do I want to lead people? Do I want to, you know, just be a one-person show? Right. Because so much of that is gonna depend on your next actions. And you can't, you know, you don't know if you're taking the right action until you're clear on that. And I'll add on to that too, uh, since I brought up actions. I think that's we think that like with confidence, like we should be confident or we should be this or that. You only learn those skills through doing. And like, you know, if you're like we talked about do you want to start a business? You are only gonna learn that through doing. And so just keep taking action, whether that's small steps or big steps, because you know, if you can get 1% better every day or every month, you look at at the end of the year or at the end of five years, and you're gonna be so much farther along just from doing.

SPEAKER_00 20:15

Absolutely. Well, thank you, Joey. So glad you were on the podcast. Always great content. So thank you for your time.

SPEAKER_02 20:20

Yes, I'm happy to be here. This was a lot of fun. And anyone who knows me, I love talking about business. I could talk all day. So I love the podcast that you guys have released. It's been really good, a lot of fun, you know. And if you want to hear from me more, feel free to check out Up Leveling on Spotify, Apple, and all the places you listen to podcasts.

SPEAKER_00 20:40

Thank you again to Security Safe for their support of the Gateway Connection podcast. And until next time, don't forget to subscribe, leave us a review, and share it with a friend. For ways to stay connected, be sure to visit the links in the show notes, and we'll catch you here next time on the Gateway Connection podcast.